Byju’s is examining the sale of its two major assets — Epic and Great Learning — to repay its entire $1.2-billion term loan B (TLB).
The ed-tech major is understood to have told its TLB lenders that it intends to fully repay the amount of $1.2 billion in six months, with $300 million to be paid in the next three months.
The lenders are reviewing the proposal and are seeking more details on how Byju’s plans to fund the repayment.
Byju’s declined to comment on the report. The company’s total debt was not clear.
Byju’s in November 2021 had mobilised $1.2 billion in the form of TLB from a group of overseas investors.
A TLB allows for the flexible repayment of dues to creditors and is a type of senior secured syndicated credit facility that is issued by global institutional investors.
The proceeds from TLB are generally used to either refinance an existing debt or to make overseas acquisitions to enhance a company’s offerings.
It is learnt that Byju’s is looking to raise at least $800 million from the sale of Epic, the US-based kids learning firm, and Great Learning — the upskilling platform.
Additionally, the country’s most-valued start-up is looking to raise fresh capital from equity sales.
The company acquired Great Learning in 2021 for $600 million in a cash, stock and earnout deal. A year later it purchased Epic the US-based kid’s learning platform for $500 million in a cash and stock deal.
Byju’s was in the news when three senior executives resigned as the start-up restructured its operations by consolidating four verticals into two. Among those who have quit were chief business officer Pratyusha Agarwal, Mukut Deepak, business head for Byju’s class 4-10 school segment, and Himanshu Bajaj, head of its tuition centres business.
Byju’s senior vice-president for international business Cherian Thomas had resigned from the company to join US-based Impending Inc.
The company recently formed an advisory council with ex-Infosys CFO Mohandas Pai and Bharatpe chairman and former SBI chief Rajnish Kumar after the exit of investors G.V. Ravishankar of Sequoia Capital (now Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative and Russell Dreisenstock of Prosus.
The long delay in Byju’s financial statements and concerns over its corporate governance have led to members from key investors stepping down from its board and auditor Deloitte severing ties with the firm.
Dutch-listed investor Prosus NV slashed its valuation on Byju’s earlier this year and said the start-up’s directors regularly disregarded its advice despite repeated efforts.
Byju’s has let go of thousands of employees this year amid a finds squeeze.
With inputs from Reuters